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More Pain Predicted For Indonesia Stock Market

The Indonesia stock market on Wednesday halted the four-day winning streak in which it had soared almost 270 points or 4.5 percent. The Jakarta Composite Index now rests just above the 6,275-point plateau and it's looking at another soft start again on Thursday.

The global forecast for the Asian markets is negative on continuing concerns over world trade, plus a deep drop in crude oil prices. The European and U.S. markets were down and the Asian markets figure to open in similar fashion.

The JCI finished modestly lower on Wednesday as the financial shares and resource stocks were mostly in the red.

For the day, the index dropped 29.82 points or 0.47 percent to finish at 6,276.18 after trading between 6,257.44 and 6,296.82.

Among the actives, Bank Danamon Indonesia shed 0.21 percent, while Bank Central Asia skidded 1.10 percent, Bank Negara Indonesia collected 0.29 percent, Bank Rakyat Indonesia lost 0.47 percent, Indosat plunged 3.33 percent, Indocement added 0.49 percent, Semen Indonesia tumbled 3.13 percent, Indofood Suskes fell 0.35 percent, Unilever Indonesia jumped 1.58 percent, Bumi Resources skidded 1.60 percent, Aneka Tambang retreated 1.26 percent, Vale Indonesia rose 0.34 percent and Timah and Bank Mandiri were unchanged.

The lead from Wall Street is soft as stocks turned in a lackluster performance on Wednesday before ending slightly lower, extending losses from the previous session.

The Dow shed 43.68 points or 0.17 percent to finish at 26,004.83, while the NASDAQ lost 29.85 points or 0.38 percent to 7,792.72 and the S&P 500 fell 5.88 points or 0.20 percent to 2,879.84.

The weakness on Wall Street came as traders weighed lingering trade concerns against optimism about an interest rate cut by the Federal Reserve.

The U.S.-China trade conflict has moved back into the spotlight ahead of the G20 summit later this month - however, a report showing tame inflation has further fueled expectations that the Federal Reserve will cut interest rates in the near future.

Crude oil futures plunged sharply on Wednesday after the Energy Information Administration showed a jump in U.S. crude stockpiles for a second straight week. West Texas Intermediate Crude oil futures for July ended down $2.13 or 4 percent at $51.14 a barrel, the lowest settlement price since mid-January.

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